US Treasury Prices Surge as Traders Begin Digesting Expectations of Moderate Fed Easing

MaticHoleFiller · 2026-03-23T20:52:19+00:00

After Trump ordered a suspension of military strikes against Iran, U.S. Treasury prices rose, Treasury yields declined, the market lowered expectations for Federal Reserve rate hikes, and reconsidered accommodative policies.

MaticHoleFiller

2026-03-23 20:52:19

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After U.S. President Donald Trump ordered the Pentagon to delay military strikes on Iranian power plants and energy infrastructure, U.S. Treasury bond prices surged, erasing earlier declines.

Yields on U.S. Treasury bonds across all maturities fell, led initially by the two-year notes, which are most sensitive to Federal Reserve policy changes.

Traders lowered their bets on the Fed tightening monetary policy this year and began to reprice some degree of easing. Before Trump made the above remarks, the money markets had almost fully priced in a 25 basis point rate hike.

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